Procurement cost of Su-30 MKI over Rs.55,717 cr; LCA about Rs.8691 cr

(Machinist.in) :   Defence Minister Shri AK Antony said that the total cost of procurement of the Su-30 MKI is over Rs.55,717 crore while the cost of procurement of the TEJAS Light Combat Aircraft is about Rs.8691 crore.

Hindustan Aeronautics Limited (HAL) is already manufacturing the Su-30 MKI aircraft as well as the TEJAS Light Combat Aircraft for the IAF. HAL would also eventually be manufacturing the Medium Multi-Role Combat Aircraft (MMRCA) and Fifth Generation Fighter Aircraft (FGFA) planned for induction into the IAF. "The Defence Procurement Procedure provides for procurement of aircraft and their subsequent manufacture in India. Hence, major aircraft procurement programme entail a mix of outright purchase from abroad and subsequent manufacture in India with increasing levels of indigenization," Antony said.

He added that capacity for design and manufacture of modern combat aircraft involves development of very high and sophisticated technology skills which is a gradual process. Technology denial regimes have thwarted this effort in the past.

The Defence Industry sector is open up to 100% for Indian Private sector participation with FDI permissible upto 26%, both subject to licensing.

The Government promotes production of equipment/components/ spares under transfer of technology from foreign suppliers through acquisitions categorized as "Buy & Make" and "Buy & Make (Indian)" under Defence Procurement Procedure (DPP).

The DPSUs and OFB have developed their capabilities by way of absorption of technologies through TOT route over the times and thereby are catering mainly to the procurement by the services from domestic sources. Private sector is enhancing its capabilities. However, the rate of change in technologies in the defence sector is limiting procurement from domestic sources.

The Defence Production Policy-2011 endeavors to build up a robust indigenous defence industrial base by, proactively encouraging larger involvement of the Indian private sector in design, development and manufacture of defence equipment.

The Defence industry sector is capital intensive and the investments in this sector are driven by the commercial interests. Foreign technology infusion is being encouraged by permitting FDI upto 26%, subject to licensing, in the defence industry sector. Greater allocation of resources in R&D by the DPSUs and DRDO is also being encouraged.